* Coach hits 9-month high after results best estimates
* Apple hits record ahead of quarterly results
* Pfizer down after revenue misses estimates
* Fed kicks off two-day meeting; statement due Wednesday
* Dow up 0.10 pct, S&P flat, Nasdaq down 0.01 pct
(Adds details, changes comment, updates prices)
By Tanya Agrawal
May 2 U.S. stocks treaded water in a tight range
in late morning trading on Tuesday as a rise in technology
stocks, led by Apple, was offset by losses in consumer staples
and healthcare companies.
The Nasdaq Composite eked out another record high, before
easing, with investors holding off from making big bets as the
two-day Federal Reserve meeting kicked off.
The Fed is widely expected to stand pat on interest rates,
but investors are awaiting the central bank's statement on
Wednesday for hints on the possibility of a rate hike in June.
Weighing on sentiment was U.S. automakers reporting a fall
in new vehicle sales for April. Ford dropped 3.8 percent,
while General Motors fell 3.3 percent.
"I think the auto sales numbers have caused the market to
take a step back," said Brent Schutte, chief investment
strategist at Northwestern Mutual Wealth Management Company in
"I think people are reading too much into that. There's a
fear that is building on last quarter's GDP numbers that the
consumer is pulling back, which we don't think is the case."
Data last week showed the U.S. economy grew at its slowest
pace in three years in the first quarter. But, Schutte said
strong corporate earnings have helped hold the market up.
"With earnings rising, that is backdrop for positive stock
returns moving forward."
Overall, profits at S&P 500 companies are estimated to have
risen 13.9 percent in the first quarter, the most since 2011,
according to Thomson Reuters I/B/E/S.
At 11:02 a.m. EDT (1502 GMT) the Dow Jones Industrial
Average was up 21.62 points, or 0.1 percent, at
The S&P 500 was down 0.18 points, or 0.00 percent, at
2,388.15 and the Nasdaq Composite was down 0.78 points,
or 0.01 percent, at 6,090.82.
Six of the 11 major S&P 500 sectors were lower, with the
consumer staples index's 0.48 percent fall leading the
CVS Health was down 2.8 percent at $79.80, while
Archer Daniels Midland fell 1.9 percent to $42.08, after
Dow component Pfizer was down 1.5 percent at $33.29
after the drugmaker's quarterly revenue missed estimates,
pulling down the healthcare index, which fell 0.3
The technology sector was up 0.33 percent. Apple
hit a record high for the second straight day. The
iPhone maker is due to report results after the close of market.
Advanced Micro Devices tumbled 17.3 percent to
$11.26 after the chipmaker's second-quarter gross margins
forecast raised some concerns.
Coach rose as much as 11 percent to a nine-month
high of $43 after the handbag maker reported a
higher-than-expected quarterly profit.
Advancing issues outnumbered decliners on the NYSE by 1,371
to 1,369. On the Nasdaq, 1,576 issues fell and 1,063 advanced.
The S&P 500 index showed 37 new 52-week highs and seven new
lows, while the Nasdaq recorded 111 new highs and 32 new lows.
(Reporting by Tanya Agrawal in Bengaluru; Editing by Savio